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The pods will be eight to a room and an alternative to the traditional bunk beds in a shared dorm room targeted at budget travelers.

"It's your own individual capsule in which you can have a little more privacy," Alpe said.

He said there would also be full rooms with en-suites available. Some guests would only be using the accommodation for a short stopover before continuing travels elsewhere, Alpe said.

"Being close to the airport enabled us to also have the option for people who only want to be there for four or five hours. They want a place to sleep and then they want to get back on a flight and go," he said.

Jucy was confident an increase in direct flights to Christchurch would mean demand for the new hotel would continue.